WASHINGTON (NEXSTAR) — New federal data shows in July inflation held steady at 2.5%. The economic figure is down significantly from its peak of 9.1% in 2022.
Bank Rate Senior Economic Analyst Mark Hamrick said the news all but guarantees the Federal Reserve will cut interest rates at its September 18th meeting. He said the action will bring some relief to borrowers.
“And so, we’ll all be getting a better bargain in the sense of lower borrowing costs when we seek to take out loans or use a credit card,” Hamrick said.
White House Economic Council Deputy Director Jon Donenberg said the inflation data proves the Biden administration’s economic agenda is working.
“We have largely beat inflation,” Donenberg said. “Gas prices are almost down 50 cents from last year, wages are rising faster than prices.”
Polling shows most Americans say inflation is their biggest concern ahead of the election. Donenberg said the Biden administration will continue to tackle high prices in the coming weeks.
“The president and the vice president both understand that prices are still too high particularly at the grocery store and that’s why they’re fighting to really advance an agenda that will lower costs,” Donenberg said.
Former President Donald Trump and Vice-Presidential candidate Sen. J.D. Vance have made the “inflation crisis” a centerpiece of their campaign.
Speaking to firefighters Thursday, Vance railed against the Biden administration’s economic policies and promised relief under Trump’s leadership.
“Trump and I want exactly what you want, more jobs, rising wages, a secure border, safe streets and an affordable country,” Vance said.
